Stock Markets February 25, 2026

ASML Says Artificial Intelligence Now the Principal Driver of Equipment Demand

Chipmaking equipment leader points to robust AI-driven capacity builds even as geopolitical and macro uncertainty lingers

By Marcus Reed
ASML Says Artificial Intelligence Now the Principal Driver of Equipment Demand

ASML has revised its outlook on demand drivers, identifying artificial intelligence as the primary force behind product sales after seeing new and significant AI-related capacity expansion among customers. The Netherlands-based lithography equipment maker reported 2025 full-year sales of 32.7 billion euros, a 15.6% increase, a gross profit margin of 52.8% and a backlog of 38.8 billion euros, while flagging heightened geopolitical and macroeconomic uncertainty.

Key Points

  • ASML now identifies AI as the principal driver of product demand after observing significant AI-related capacity build-outs among customers; this is expected to continue into the current year.
  • The company reported full-year 2025 sales of 32.7 billion euros (a 15.6% increase), a gross profit margin of 52.8%, and a backlog of 38.8 billion euros, which ASML described as healthy.
  • ASML flagged heightened geopolitical and market uncertainty - including fast-changing tariff negotiations and a softer global growth outlook - while noting very strong AI chip demand led to double-digit expansion in the semiconductor market.

ASML said it now views artificial intelligence as the dominant engine of product demand, a shift from an earlier assessment that AI would account for only a limited share of customer needs. The change in stance was disclosed in the company's annual report and reflects an acceleration in customer capacity expansions driven by AI workloads at the end of last year.

Christophe Fouquet, the company's chief executive, described the emergence of new and significant AI demand as a "powerful trend" that the company expects to persist into the current year and beyond. ASML, the world's largest supplier of lithography equipment used to produce advanced chips, said this pattern is already shaping purchases of its systems.

In its report, ASML outlined expectations for continued growth in the semiconductor market, stating: "We anticipate continued growth in the semiconductor market driven by strong demand for AI logic and memory products, along with high pricing resulting from supply-demand imbalances. This is expected to drive demand for growth in the equipment market."

Financial results released for the full year showed sales rose 15.6% versus the prior year, reaching 32.7 billion euros for 2025. Gross profit margin increased modestly to 52.8%. The company also highlighted a backlog of 38.8 billion euros, which it described as a "healthy level" of business on the books.

At the same time, ASML warned of a "high degree of geopolitical and market uncertainty" during 2025, citing rapidly evolving tariff negotiations and a variable outlook for the global economy. The group referenced IMF figures indicating worldwide activity slowed to 3.2% last year, compared with upwardly revised estimates of 3.3%.

ASML noted that a slowdown in GDP growth is typically not a tailwind for a strong semiconductor cycle, even while very high growth in AI chip demand propelled the overall semiconductor market to double-digit full-year expansion. The company emphasized the growing strategic importance of advanced chips, saying access to cutting-edge semiconductors has become increasingly important for countries pursuing technological leadership and security.

Looking ahead, ASML said it intends to engage with governments as nations consider increased construction of chip manufacturing facilities across the U.S., Europe and Asia. The company framed this cooperation as part of broader industry dynamics as policymakers and manufacturers respond to AI-driven demand for logic and memory products.


Key facts

  • Full-year 2025 sales: 32.7 billion euros, up 15.6% year-on-year.
  • Gross profit margin for 2025: 52.8%.
  • Order backlog: 38.8 billion euros.

Risks

  • Geopolitical and market uncertainty: ASML reported a high degree of geopolitical and market uncertainty in 2025, citing evolving tariff negotiations; this uncertainty affects the semiconductor equipment and broader technology sectors.
  • Slowing global growth: Citing IMF figures, ASML noted worldwide activity slowed to 3.2% last year versus upwardly revised estimates of 3.3%, and said slower GDP growth is typically not supportive of a strong semiconductor cycle - a risk to chipmakers and equipment suppliers.
  • Policy and access considerations: ASML highlighted that access to advanced chips is increasingly important for national technology and security strategies, indicating that government actions around manufacturing facilities may influence the pace and geography of industry investment.

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